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Spring Budget 2017 announcements

The Spring Budget 2017 brought three new initiatives, Supporting Small Businesses, New Business Rate Relief Scheme for Pubs and Local Discretionary Revaluation Rate Relief.

Supporting Small Businesses and New Business Rate Relief Scheme for Pubs

The first two of the three initiatives, Supporting Small Businesses and New Business Rate Relief Scheme for Pubs will be delivered by South Norfolk Council under our discretionary rate relief powers. These will give a one year £1,000 discount for almost all pubs in 2017/18 and provide support to cap the amount of increase for those ratepayers facing large increases as a result of the loss of small business rate relief or mandatory rural rate relief following the revaluation.

Local Discretionary Revaluation Rate Relief Scheme

The third initiative in the Spring Budget 2017 required South Norfolk Council to shape and adopt a Local Discretionary Revaluation Rate Relief Scheme to help businesses facing the steepest increases in their bills as a result of the revaluation of rateable values which came into effect on 1 April 2017. The Government has made available a discretionary fund of £300m over four years from 2017/2018. The share for South Norfolk for 2017/18 will be £243K.

Support will be available (subject to State Aid de minimis rules) to those ratepayers meeting all the following criteria:

The business faces an increase in 2017/18 of at least £500, representing an increase of at least 5% on 2016/17

The business occupied the same premises immediately before and after the revaluation came into effect (i.e. on both 31 March 2017 and 1 April 2017). This means that the support will not be available to businesses taking on premises after 1 April 2017 and will cease when there is a change in occupier

That the premises were occupied on those qualifying dates and remain occupied (no support will be provided for any periods that the premises are vacant).

There is no upper limit to the amount of increase that qualifies for some support. Increases of above £24,000 will be reduced by £10,000 as per the following table (subject to State Aid restrictions).

The amount of relief awarded will be capable of being recalculated in-year in the event of a change of circumstances. This could include, for example, a change to the rateable value of the premises, a change to the period of liability or a change in the amount due as a result of the application of other reliefs/exemptions. Relief may also be varied during the year where eligibility criteria are no longer met.

The table below sets out the proposed bands of increase and corresponding award levels:

Band

Lower level of band £ increase

Upper level of band £ increase

Award level for band £

A

£0

£499

£nil

B

£500

£900

£300

C

£1,000

£1,999

£600

D

£2,000

£3,999

£1,200

E

£4,000

£5,999

£2,000

F

£6,000

£7,999

£2,800

G

£8,000

£9,999

£3,600

H

£10,000

£11,999

£4,400

I

£12,000

£13,999

£5,200

J

£14,000

£15,999

£6,000

K

£16,000

£17,999

£6,800

L

£18,000

£19,999

£7,600

M

£20,000

£21,999

£8,400

N

£22,000

£23,999

£9,200

O

£24,000

No Limit

£10,000

Support will be provided at a lower level for 2018/19, 2019/20 and 2020/21. The bandwidths and award levels per band will be determined in advance of bills being issued for those years.

Recalculations of relief award

With all forms of relief, the amount of relief awarded will be recalculated in the event of a change in circumstances. This could include, for example, a change to the rateable value of the premises, a change to the period of liability or a change in the amount due as a result of the application of other reliefs/exemptions.

Relief may also be varied during the year where eligibility criteria are no longer met.